India's banks face funding crunch amid credit growth surge
pre-market1 source ↓written by the desknot a recommendation
- reached
- 14.5%
- 11.9%
- of total deposits
- 2.6%
- has climbed above
- 82%
India’s banking system is experiencing a funding strain as credit growth reached 14.5%, outpacing deposit growth at 11.9%. This mismatch has led banks to increasingly rely on certificates of deposit, which now constitute 2.6% of total deposits, the highest in a decade. The credit-deposit ratio has climbed above 82%, nearing historic highs, indicating a tightening liquidity environment.
Not investment advice. For informational purposes only.